Mr. Paul Wilson reports

DECIBEL ANNOUNCES THIRD QUARTER RESULTS WITH $30.2 MILLION OF NET REVENUE, $6.7 MILLION OF ADJUSTED EBITDA, AND POSITIVE FREE CASH FLOW

Decibel Cannabis Company Inc. has released its interim financial results for the three-month and nine-month periods ended Sept. 30, 2023.

"With continued success in our ready to consume product strategy, our recent launches including General Admission Blinker, General Admission edibles, and our new brand Vox Popz crushable pre-rolls are expected to further cement our ready to consume position and meaningful growth in the coming year." said Paul Wilson, CEO of Decibel. "Alongside these top line growth initiatives, we are pleased to have concluded the expansion of our manufacturing capacity, which will expand gross margin and support our new wave of product launches."

Third Quarter Highlights

National Market Share (2) of 7.5% in Q3 2023 which placed Decibel as the 2nd largest licensed producer in Canada by market share.

Net Revenue of $30.2 million in the third quarter of 2023, with a sequential decline of 2% over the prior quarter, and year over year growth of 65%. Net revenue growth was driven by growth in demand for vapes and infused products, increased manufacturing capacity, international sales(4), and the launch of the Company's new brand Vox and General Admission Edibles. International sales were impacted by $1.4 million due to third party lab delays which have since been resolved with Q3 volumes having been sold in Q4 2023.

Gross Margin Before Fair Value Adjustments was 43% in the third quarter of 2023, compared to 42% in the prior quarter and 52% in the third quarter of 2022. The third quarter was impacted by a $368 thousand write off of aged product and increased temporary labour of $566 thousand to meet market demand. The Company completed certain operational investments in November, including the expansion of its manufacturing capacity, which at current production and sales is anticipated to realize cash-flow savings of approximately $10 million at full year production rate.

Adjusted EBITDA (1) of $6.7 million in the third quarter of 2023, with a sequential decline of 8% over the prior quarter and year over year growth of 57%.

Positive Free Cash Flow (1) of $1.2 million in the third quarter of 2023, with a sequential increase of 152% over the prior quarter and a year over year decline of 50%.

Adjusted Net Income (1) of $523 thousand in the third quarter of 2023, with a sequential decline of 88% over the prior quarter and a year over year decline of 82%. Adjusted Net Income was negatively impacted by a litigation expense of $3 million related to arbitration that is now concluded.

Adjusted Earnings Per Share ("Adjusted EPS") (3): of nil in the third quarter, a decrease of $0.01 from the prior quarter and a year over year decrease of $0.01.

Year to Date Highlights

• Net Revenue of $88.2 million, an increase of 65% over 2022.
• Adjusted EBITDA(1) of $20.8 million, an increase of 109% over 2022.
• Positive Free Cash Flow(1) of $3.4 million, a decrease of 31% over 2022.
• Adjusted EPS(3) of $0.02, an increase of $0.02 over 2022.

Decibel's interim financial statements for the three and nine month periods ending September 30, 2023 ("Financial Statements") and related Management's Discussion & Analysis for three and nine month periods ending September 30, 2023, are available under the Company's profile atwww.sedarplus.ca.

As of September 30, 2023, Decibel was in compliance with all of its financial covenants under its credit facilities and expects to remain in compliance for the remainder of its twelve-month forecast period.

About Decibel

Decibel is a consumer-focused cannabis company focused on delivering products that delight customers through a commitment to robust innovation and product quality. Leading brands General Admission, Qwest, and Vox are among its portfolio sold both across Canada and beginning to extend towards new countries to create a global footprint. Decibel operates a processing and manufacturing facility in Calgary, Alberta, and two cultivation facilities in Creston, British Columbia, and Battleford, Saskatchewan.

We seek Safe Harbor.